Intel plans to spin off its Network and Edge Group (NEX) into a standalone company, according to a memo shared with customers.

The new entity will focus on silicon solutions for communications, enterprise networking, and Ethernet connectivity.

Sachin Katti, who leads NEX and serves as Intel’s chief technology and AI officer, authored the memo.

A timeline for the spin-off has not been provided.

Intel will retain a stake in the new company while seeking outside investment.

A spokesperson compared the move to Intel’s approach with Altera, where it stayed on as an anchor investor.

This aligns with CEO Lip-Bu Tan’s strategy to divest non-core assets and focus on core products and AI.

The announcement came alongside workforce cuts and a scaled-back foundry business.

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